1. PROVIDING INTERNATIONAL COMPARABILITY OF POVERTY ASSESSMENTS
PROVIDING INTERNATIONAL COMPARABILITY OF POVERTY ASSESSMENTS. EXPERIENCE AND PROBLEMS
Ms. Elena Frolova, Ms.Tatiana Velikanova Department of Living Standards and Household Surveys, Federal State Statistics Service (Rosstat), Russian Federation

2. Data sources and methods of inequality and poverty assessment in the Russian statistics
Income distribution indicators have been compiled in Russia since 1970, and indicators on the poverty level - since 1992.
Until 1992, the basis for these estimates was a special sample survey of income, which was held every five years through 1989 inclusive, covering about 170 thousand families.
Department of Living Standards and Household Surveys,
Federal State Statistics Service (Rosstat)

3. Since 1992 quarterly household budget survey (HBS) data have been used as an information base for calculation of inequality and poverty indicators.
The HBS structure is aimed at obtaining data on household expenditures. Since 1997 it has not contained direct indicators on the total amount of income. Assessment of each surveyed household’s income is made ​​by calculation.
Department of Living Standards and Household Surveys,
Federal State Statistics Service (Rosstat)

4. Discrepancy of HBS results with macroeconomic indicator of population monetary income – primary causes:
Composition of HBS sample frame with underrepresented population cluster with relevantly high income
Poor reliability by indicators of savings’ increment and high-cost expense items that in many ways determine income spread.
Department of Living Standards and Household Surveys,
Federal State Statistics Service (Rosstat)

5. According to the current methodology calculations of indicators of population distribution by income are performed using the method of simulation by converting the empirical distribution (based on HBS data), into the distribution range that corresponds to a grouping variable in the population.
Department of Living Standards and Household Surveys,
Federal State Statistics Service (Rosstat)

6. On the basis of population distribution range by per capita income the following data are produced:
Distribution of total volume of monetary income by quantile groups;
Basic coefficients (indices) of income spread;
Indicators of absolute poverty in the general population (for the Russian Federation and its constituents) and by demographic (age and sex) groups of population;
Indicators of relative poverty in the general population;
Indicators of absolute poverty in the general population for international comparisons (poverty line is set at the international level considering purchasing power parity).
Department of Living Standards and Household Surveys,
Federal State Statistics Service (Rosstat)

7. Dynamics of the population with income below the subsistence minimum
In 2000 the methodology of the subsistence minimum calculation was changed.
In the composition of the consumer basket for determination of the minimum subsistence level was changed.
Department of Living Standards and Household Surveys,
Federal State Statistics Service (Rosstat)

8. Number of indigent population by constituent entities of the Russian Federation in 2012 (percentage of the total number of population in the region; preliminary data)
Department of Living Standards and Household Surveys,
Federal State Statistics Service (Rosstat)

9. Share of population with monetary income below the subsistence minimum level by main age groups
Percent of total number of population in a corresponding age group
2009
2010
2011
20121)
Total number of population
13,0
12,5
12,7
11,0
Children under the age of 16
18,6
19,2
19,9
17,9
Children under the age of 7
16,1
18,7
15,8
Children aged 7-16
20,8
20,2
21,1
19,8
Youth aged 16-30
13,5
12,8
Male aged 16-30
12,0
10,4
Female aged 16-30
14,2
13,6
11,7
Persons of capable age above 30
13,1
12,9
11,2
Male aged 31-59
12,1
12,2
10,5
Female aged 31-54
13,8
14,0
Population of above capable age - totally
7,5
6,1
5,2
Male in the age of 60 and above
7,2
5,4
5,6
4,7
Female in the age of 55 and above
7,6
6,4
6,3
1) preliminary data
Department of Living Standards and Household Surveys,
Federal State Statistics Service (Rosstat)

10. Correlation of main resource indicators with absolute and relative poverty boundaries
Absolute poverty boundaries:
subsistence minimum level
50% of median monetary income in 2001
Relative poverty boundaries:
40% of median monetary income
50% of median monetary income
Department of Living Standards and Household Surveys,
Federal State Statistics Service (Rosstat)

11. Dynamics of absolute and relative poverty
Department of Living Standards and Household Surveys,
Federal State Statistics Service (Rosstat)

12. Dynamics of absolute and relative poverty

13. The rate of decline / growth of absolute and relative poverty
Department of Living Standards and Household Surveys,
Federal State Statistics Service (Rosstat)

14. Share of population with income per capita lower:
Share of population with income below the poverty line set at the international level with the purchasing power parity1)
percentage of total population
Share of population with income per capita lower:
Reference: share of population with income lower than the subsistence minimum
1,25$2) per day
2$2) per day
2,5$2) per day
4$2) per day
10$2) per day
Russian Federation
2009
0,0
0,1
0,6
8,9
13,0
2010
0,5
8,4
12,5
2011
12,7
20123)
8,0
11,0
Reference4):
Brazil
6,1
10,8
15,1
27,6 …
21,4
India
32,7
68,8
81,1
93,8
29,8
China
11,8
27,2
36,5
58,0
South Africa
13,8
31,3
39,5
55,5
23,05)
The World Bank
Russian Federation – by PPP in international prices 2008 ( – preliminary data); Brazil, India, China and South Africa – by PPP in international prices 2005
Preliminary data
Source of information: The World Bank database "Poverty and Inequality Database“
2006
Department of Living Standards and Household Surveys,
Federal State Statistics Service (Rosstat)

15. Development of methodology in the poverty and inequality statistics
Expansion of the system of estimation indicators of socio-economic differentiation and poverty due to the implementation of indicators of socio-economic differentiation and poverty, standardized by the OECD, in the Russian statistics for comparative analysis at the international level and identification of trends in the dynamics of income distribution and poverty level within the country.
Department of Living Standards and Household Surveys,
Federal State Statistics Service (Rosstat)

16. Tasks requiring solutions on the way of transition to the extended system of assessment indicators of differentiation and poverty based on an OECD methodology:
choice of information sources;
identification of indicators and the order of their calculation (depending on used information base);
Department of Living Standards and Household Surveys,
Federal State Statistics Service (Rosstat)

17. development of equivalence scales;
calculation across the various poverty thresholds (to determine the level of relative poverty);
development of equivalence scales;
improving the quality of initial data;
problem resolution of incorporation a new system of calculation in the composition of the current complex.
Department of Living Standards and Household Surveys,
Federal State Statistics Service (Rosstat)

18. Estimates of relative poverty in Russia according to the OECD methodology
According to the OECD methodology, the relative poverty threshold is 50% of percentage of the median equivalised disposable income of the entire population.
Equivalised disposable income is expressed as follows:
N = D/SE,
N – per capita equivalised income;
D – nominal household income;
S – household size;
E=0,5 - equivalence elasticity.
УпрDepartment of Living Standards and Household Surveys,
Federal State Statistics Service (Rosstat)

19. Poverty risk index by gender and by age in 2008
according to the current methodology equivalence elasticity Ɛ=1
according to the OECD methodology equivalence elasticity Ɛ=0,5
Poverty risk index > 1 shows how many times the poverty risk for the population grouped by age and sex is greater than the poverty risk for the population in whole.
Poverty risk index < 1 shows how many times the poverty risk for the population grouped by age and sex is lower than the poverty risk for the population in whole.
Department of Living Standards and Household Surveys,
Federal State Statistics Service (Rosstat)

20. Poverty risk index by gender and by age in 2008 (according to the OECD methodology)
Department of Living Standards and Household Surveys,
Federal State Statistics Service (Rosstat)